Ban on milk powder export should continue: Consumer activists

PTISep 28, 2007, 06.10pm IST

NEW DELHI: Consumer activists on Friday demanded that the ban on milk powder export should continue as they fear lifting the restriction before Dussehra and Diwali will flare up milk prices in the domestic market.

"Removal of ban and allowing exports freely is bound to cause shortage of milk during the upcoming long festival season starting with Eid. Prices can escalate once again," consumer activist Bejon Misra said.

He said during celebration time demand for milk products soar high and any shortfall can cause havoc in the market.

"Government has to ensure availability of milk in abundance as it has been seen that whenever there is shortage, it leads to adulteration," Misra emphasised.

Releasing a document on milk powder export, another activist Noorul Anwar said record high prices of skimmed milk powder in the global market have created a usual situation in the country.

Anwar said milk powder price difference between domestic and international market is Rs 75-90 per kg. Milk powder here is selling at Rs 105 per kg, against Rs 145 in July, he added.

In February, government had banned export of milk powder to contain domestic prices and it is valid till September 30. The government is yet to take a decision on the extension of ban as milk powder producers, including cooperative major Amul, have been demanding the removal of ban.

The Confederation of Indian Industries (CII) had recently circulated a note supporting continuance of the ban.

Meanwhile, manufacturers have reduced their plant utilisation to 40 per cent of the total capacity. India produces about 100 million tons of milk annually out of which only six per cent is used for producing milk powder.

"Most of the units are running below capacity due to ban," a milk powder manufacturer said.